Provide for Your Loved Ones and the University

Charitable Lead Trusts

Do you want to benefit from the tax savings that result from supporting the University, yet you don't want to give up any assets that you'd like your family to receive someday? You can have it both ways with a charitable lead trust.

There are two ways charitable lead trusts make payments:

A charitable lead annuity trust pays a fixed amount each year to the University and is more attractive when interest rates are low.

A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to the University go up as well.

An Example of a Charitable Lead Trust

Man smilingGeorge would like to support the University and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to the University each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $854,311. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.

*Assuming annual payments and a 3.2 percent charitable midterm federal rate.

Next Steps

  1. Contact Jon Kraus at 303.871.4619 or jon.kraus@du.edu to talk about supporting the University by setting up a charitable lead trust.
  2. Seek the advice of your financial or legal advisor.
  3. If you include the University in your plans, please use our legal name and federal tax ID.

Legal Name: University of Denver (Colorado Seminary)
Address: 2199 S. University Blvd., Denver, CO 80208
Federal Tax ID Number: 84-0404231

Gifts That Pay

Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.

Calculate Your Benefits

Calculate Your Benefits

Submit a few details and see how a charitable lead trust can benefit you.

See My Benefits

Discover More

Discover which type of charitable trust best fits your estate plan with the FREE guide Trusts: Choose From 2 Win-Win Ways to Donate.

View My Free Brochure
Disclaimer